A bill that would etch controversial rule changes to Colorado’s sales tax collection framework into law received unanimous support from the House Finance Committee on Thursday, April 11. It will now head to the Appropriations Committee as its sponsors race to get it approved before the 2019 legislative session ends on May 3 and the twice-delayed rules go into effect June 1.
House Bill 1240, dubbed the “Sales and Use Tax Administration” bill, is being co-sponsored in the House by Rep. Tracy Kraft-Tharp, D-Arvada, and Rep. Kevin Van Winkle, R-Highlands Ranch. If passed, it would make a number of changes to the state’s sales tax system.
Most impactful, it would codify a rule change announced by the Colorado Department of Revenue last year that establishes a destination-based sales tax system in the state. Instead of online retailers assessing, collecting and paying the state sales taxes based on taxing jurisdictions they share in common with their customers, the bill would mandate that they collect taxes based on the buyer’s address.
It’s that requirement that has proved controversial: Many small-business owners worry the additional red tape will put them out of business.
For The Full Story: Fort Morgan TimesFort morgan times
by joe rubino | the denver post
april 17, 2019